AIG Should be Able to Pay Up: Moody's

AIG should be able to repay its government loan and most of its investment, according to Moody's.

NEW YORK ( TheStreet) -- It's highly likely American International Group ( AIG) will be able to repay its loan from the government and most of its investment, according to Moody's Investor Services.

The news sent shares of the flailing insurer soaring 9% to $39.42 in pre-market trading.

While AIG's restructuring plan still relies heavily on government support, if its operations and global financial markets continue to stabilize, the company can likely generate enough value to fully repay the government, Moody's said in a statement.

Moody's maintained its credit rating on the stock.

AIG has access to a $182 billion loan from the government and, as of last week, owed more than $44 billion on the credit line.